Audit report : ROCAP regional export assistance -- ICAITI

THE AUDIT INCLUDED A REVIEW OF RECORDS IN THE OFFICES OF ROCAP AND THE CENTRAL AMERICAN INDUSTRIAL RESEARCH INSTITUTE (ICAITI), AS WELL AS A REVIEW OF PRINCIPAL CONTRACTS FOR TECHNICAL SERVICES, INTERVIEWS WITH RETURNED PARTICIPANTS, AND INSPECTION OF MAJOR COMMODITIES. ALTHOUGH ICAITI HAS ATTAINED A POSITION OF EMINENCE IN CENTRAL AMERICA IN ITS ROLE OF APPLYING MODERN TECHNOLOGY TO PROMOTE INDUSTRIAL GROWTH, IT IS NOTED THAT SIGNIFICANT CHANGES HAVE OCCURRED IN PROJECT DIRECTION AND CHARACTER WITHOUT A CORRESPONDING REVISION OF THE NON-CAPITAL ASSISTANCE PAPER (PROP). RECENT POJECT AGREEMENTS (PRO AG), THEREFORE, ARE NOT DIRECTLY RELATED TO THE PROJECT PURPOSE AS SHOWN IN THE PROP. SHORTLY AFTER THE SUBMISSION OF THE 3/12/71 PROP WHICH ENVISAGED EXPANSION OF 3 EXISTING SUBPROJECTS INTO 8, SERIOUS PROBLEMS WERE ENCOUNTERED IN THE 3 EXISTING SUBPROJECTS. 2 OF THE 3 SUBPROJECTS FAILED AND ARE NO LONGER IN OPERATION. THE REGIONAL EXPORT COMMISSION HAS NOT BEEN ESTABLISHED,AND THE COORDINATING BOARD IS NO LONGER FUNCTIONING. PROMECA HAS NOT YET BEEN ASSIGNED LEGAL STATUS IN THE CENTRAL AMERICAN COMMUNITY, AND HAS NOT PROVIDED THE INPUT REQUIRED FOR THE PROJECT. THE ACTIVITIES OF ICAITI HAVE NOT BEEN DIRECTED TO SPECIFIC EXPORT PRODUCTS, AND THUS HAVE NOT PRODUCED THE NECESSARY INDEPENDENT INCOME TO MAKE THE INSTITUTION COMPLETELY SELF-SUSTAINING. A PROJECT IMPLEMENTATION PLAN WAS NOT PREPARED BY ROCAP ESTABLISHING A DETAILED PLAN OF ACTION TO CORRELATE INPUTS, AND TARGET DATES WERE NOT ESTABLISHED AS A TIME FRAME FOR PROJECT OUTPUTS. RECOMMENDATIONS INCLUDE: 1) THAT ROCAP REVISE THE PROP TO REFLECT THE SIGNIFICANT OPERATING CHANGES THAT HAVE OCCURRED; AND 2) THAT ROCAP PREPARE A PROJECT IMPLEMENTATION PLAN IN CONJUNCTION WITH ITS REVISION OF THE PROP, THEREBY PROVIDING A FRAMEWORK FOR PROJECT IMPLEMENTATION AND EVALUATION.